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Digital Transformation Is Not About This

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Digital Transformation Is Not About This

#WAODigital18 I’m hearing a lot about testing multiple small things and spreading what works – rather than investing in single Big Bang solutions. The world is moving too fast…

— Chris Bolton (@whatsthepont) June 14, 2018

“How ambitious can organisations be in using digital technology?” was the theme of two recent events I contributed to for the Wales Audit Office Good Practice Team. 

It served as both a reminder of the issues our organisations are grappling with – as well as unearthing some opportunities we are yet to exploit.

Here’s a round-up of my post-match thoughts:

Success in digital transformation depends on mindset, not technology

The problem is that digital change requires a completely different mindset, not just skill-set. The consumerisation of IT means we are forever playing catch-up.  Employees are using popular tech and devices at home and then introducing them in the workplace, whilst customers are using better tech than most of our organisations can hope to provide.

Redesigning our services around this is cultural rather than technological. It means we need to adopt very different organisational behaviours.

Stop talking, start experimenting

Organisations are still over-thinking digital and being cautious – waiting for the landscape to settle before they decide what they do. Arguably this ‘wait and see’ option is more ‘wait and die’.

When you don’t really know the way forward the best strategy is to spread your bets with small experiments. It’s these low-cost practical tests that show whether the fundamental assumptions are correct and what they mean for your business.

A focus on cost-cutting is a danger in transformation plans

Focusing everything on cost savings is outdated and will ultimately have longer-term implications for business in the digital era. There’s a huge opportunity for companies to broaden the lens and widen their ambition:

  • Rebuilding organisation’s as a platform – enabling people to select the suppliers and services they themselves want
  • Rewiring your organisation for the network era – stripping out hierarchy and management and making a transition to decentralised decision making
  • Automating everything that can be automated. But not before stripping out legacy protocols and systems.  Decommissioning old world services as you launch new ones, reserving your people for worthwhile jobs that add value to their lives and those of others.

In reality, many of us are delivering the same services as we did in 1970,  just with shiny websites and ‘customer portals’. That’s not transformation, that’s stagnation.

Technology cannot solve your organisation’s deep problems

If someone gives you the digital sales pitch as a golden bullet for systems that are fundamentally broken my advice is, don’t believe them – Shirley Ayres

The problem I have with digital cheerleading is two-fold:

  • The implication that all our problems are easily ‘solvable’ 
  • The subsequent rush towards technology – as if digital is the only solution.

The evidence that technology makes us more productive is weak at best. There’s an ever-increasing gap between technological sophistication and work actually being performed.

This is because we are simply taking existing ways of working and digitising them – effectively just transferring today’s problems to another platform.

‘Digital transformation’ is rarely about digital, or transformation.

It’s actually about the processes by which you change your business model or approach. Some of which will have digital elements.

We need to talk about leadership in a digital age

Digital illiteracy will get you fired long before a robot does. Digital is now not just part of the economy — it is the economy. Rather than it being the responsibility of an elite few surely anyone in a publicly funded role must be digitally literate?

Perhaps leadership in the digital age is less a set of skills and more a set of behaviours.

The challenge for current leaders and public sector organisations is the legacy thinking and a business model disconnected from citizens living digital lifestyles.

What is digital transformation anyway?

If your transformation doesn’t significantly change the customer experience of interacting with you, then it is not a transformation.

Indeed, the first rule of digital transformation is not to talk about digital transformation.

As Tony Colon writes – most employees wouldn’t be confident and nearly a third would be “extremely uncomfortable” in explaining what this concept actually is:

Let’s think about that for a second. The concept that businesses are betting on is something that the general population just doesn’t understand – even though they need to play a part in that transformation at work – and the entire premise of digital transformation relies on people.

Related: Failure: We Need To Move From Slow And Stupid To Fast And Intelligent

Making the opportunities of digital real for people is becoming one of the most pressing priorities for our organisations.

Our biggest challenges are dealing with people’s belief systems, addiction to legacy processes and cognitive biases.

Digital transformation is not a ‘thing’.

It’s a race you can’t win with no end destination.

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